One of the most important directions of the Government's work for the management of public finances in the defense sector is the improvement of the processes of medium-term budget planning. However, in the face of limited revenues financial resources for defense needs, there is an urgent need to adhere to the principle of priority when drafting the State Budget, which requires a well-founded approach to defining indicative (forecast) financial and economic indicators for strategic (operational) purposes of the Armed Forces development. In turn, for this purpose it is necessary to ensure that the trends of social and economic development of Ukraine, the results of the implementation of the measures of the State Program for the Development of the Armed Forces of Ukraine and the Plan for the maintenance and development of the Armed Forces of Ukraine for the previous period, taking into account the managerial decisions of the leadership of the Ministry of Defense and the Armed Forces of Ukraine, are taken into account. Implementation of such an approach is possible through the implementation of the program-target method of forming the State Budget, the main features of which are simplicity, openness and adaptability to the combination with other scientific methodological approaches. The typical components of the program-target method of planning are the assessment of the situation, the definition of goals, the setting of tasks, the evaluation of resources and directions of their use, analysis of the results. Research has shown that this way of forming the expenditure part of the State Budget, in contrast to the existing ones, provides an opportunity to control the realization of the goals set and focusing on the results, the possibility of evaluating the consequences of the decisions taken, as well as controlling compliance with the regulations on the use of budget funds and transparency of the budget process. The application of such a model of budget planning in governmental institutions will ensure the coverage of a wide range of weighty factors that increase the objectivity of the forecast of their impact on financial and economic indicators for the relevant purposes of the Armed Forces development.